Replacing your furnace typically costs between $2,800 and $7,000 installed, with most homeowners paying around $4,800. Smaller and well-insulated homes need smaller furnaces will be on the lower end of the range, with larger homes on the higher side.
If your furnace is 15–20 years old, you should start looking for a replacement and a local HVAC contractor to install it.
In this article, we’ll explain what goes into furnace replacement costs — from the type of furnace to efficiency and installation factors — drawing on direct-to-contractor resources to give you the most accurate estimate possible.
We’ll also review the best furnace brands and help you decide which system is right for your budget and home.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
Key Takeaways
- Replacement furnaces cost between $2,800 to $7,000 on average, including installation.
- The furnace's size, efficiency rating, and brand make the most difference in the cost.
- Upgrading to a new furnace provides better reliability and efficiency and lower energy bills.
What Is the Average Furnace Replacement Cost?
On average, furnace replacement costs between $2,800 and $7,000 for the new furnace, installation, old furnace removal, and labor. The national average cost for a new gas, oil, or electric furnace is around $4,800, but electric and gas furnaces are typically more affordable than oil furnaces.
The larger your home and the colder the area, the more BTUs (heating capacity) your furnace will need to warm it. Furnaces with more heating capacity and higher efficiency cost more. For example, if you have a large home and need a highly efficient furnace, you could pay as much as $13,100 for a new one.
| Home Size (sq ft) | BTUs Needed | Average Installed Cost |
| 1,000 | 30,000–60,000 | $2,800–$4,000 |
| 1,500 | 45,000–90,000 | $3,000–$5,000 |
| 2,000 | 60,000–1200,000 | $3,500–$5,500 |
| 2,500 | 75,000–150,000 | $4,000–$6,500 |
| 3,000+ | 90,000–180,000 | $4,750–$7,000+ |
Furnace Replacement Cost by Type
Furnace installation cost depends on the type of furnace and the fuel source. Electric furnaces are among the least expensive home heating systems, while oil and gas furnaces are more expensive.
Electric Furnace Cost
On average, electric furnaces cost between $2,000 and $7,000. They use heating coils to warm up air, which is then distributed throughout the home through ducts and vents.
Electric furnaces are known for their high energy costs, so it’s worth the higher up-front cost for a more energy-efficient unit. Since this system runs on electricity, electric furnaces are most common in warmer climates with mild winters.
Image Credit: Lennox.com
Natural Gas Furnace Cost
The average price range for a natural gas furnace is typically between $3,800 and $10,000 or more. Natural gas furnaces are common in northern states with harsh winters because natural gas is cheaper than electricity. If you want to save even more money on your utility bills, you can opt for a new unit that is more energy efficient.
Oil Furnace Cost
You can expect to pay between $6,750 and $10,000 or more for a new oil furnace installation. These furnaces are often the most expensive to install and maintain and are less efficient than others. However, this fuel type is safer than gas furnaces because you don’t have to worry about carbon monoxide. Oil furnaces are common in northern regions where you want to pay the lowest possible electric bills to heat your home.
Related: How Much Does Boiler Replacement Cost?
What is the Average Furnace Replacement Cost by BTU?
British Thermal Units (BTUs) measure your furnace’s heating efficiency. The more BTUs a furnace has, the more warm air it can pump through the pipes and heat your home. That said, larger homes require larger furnaces with more BTU capacity.
BTUs also depend on which region you live in. If you live in a northern region (region 4 or 5), you’ll need a system with more BTUs because your furnace will need to heat your home during colder winters. However, if you live in a southern region (regions 1 and 2), your furnace won’t need to heat your home in such extreme temperatures. So, you can get by with a less expensive furnace with a lower BTU rating.
Your HVAC contractor will be able to recommend the right BTUs for your furnace and explain why.
What Factors Impact Furnace Replacement Costs?
Furnace replacement cost depends on several factors, including the type of furnace you install, energy efficiency, the size of your home, and the climate where you live. Most of your furnace replacement cost can be attributed to the cost of materials and labor, but the factors that can raise or lower the cost of a new furnace include the following:
- Climate
- Efficiency
- Furnace size
- New versus replacement heating system
Furnace Replacement Cost by Climate
Where you live heavily impacts the type of furnace you need to heat your home effectively. For example, if you live in northern regions that experience cold winters, you will need a furnace with more BTUs than someone who lives in southern states, and you might opt for a two-stage furnace vs. a single-stage furnace.
Systems with more BTUs are larger and often more expensive than furnaces rated for fewer BTUs. For example, a 45,000 BTU furnace may cost between $3,200 and $4,500, but a 150,000 BTU furnace could cost $6,000 or more.
There are five climate zones that determine the type of furnace you need. Since BTUs are based on square footage, you can multiply the square footage of your home by a certain number of BTUs per square foot. Depending on where you live, you can estimate the size of your system using the following guidelines:
- Region 1: 35 BTU per square foot
- Region 2: 40 BTU per square foot
- Region 3: 45 BTU per square foot
- Region 4: 50 BTU per square foot
- Region 5: 60 BTU per square foot
For example, if you have a 2,000-square-foot home and live in Minnesota, the appropriate furnace size is about 120,000 BTUs. If you live in Florida with a home of the same size, you can get by with 70,0000 BTUs. Local furnace installers know the best system size for your home, so contact a local HVAC contractor to find out more.
Furnace Replacement Costs by Efficiency
Not only are efficient furnaces better for the environment, but these appliances can save you hundreds of dollars yearly. However, these high-efficiency furnaces come at a price. Generally, high-efficiency models are more expensive than lower-efficiency furnaces. For a moderate-efficiency furnace, expect to pay between $4,700 and $7,000, while the most efficient furnaces often cost between $6,200 and $11,000 — or more.
When looking to replace your furnace, the most important efficiency factor is the annual fuel utilization efficiency (AFUE) value. The AFUE rating indicates how much fuel your furnace converts to energy and how much is lost during conversion. That means that if your furnace has an AFUE rating of 85%, 85% of the fuel is converted, and 15% is lost.
AFUE is represented by a percentage and will likely range between 56% and 100%. The higher your AFUE, the more efficient your system is. Standard furnaces fall around or above 80%, but furnaces with 90% or more AFUE ratings can earn an ENERGY STAR rating. ENERGY STAR-certified gas furnaces with an AFUE of 97% or greater can qualify for the federal HVAC equipment tax credit. Coleman, Lennox, York, Honeywell, and Trane are the top furnace manufacturers and all offer ENERGY STAR-certified gas furnaces with AFUE ratings of 90% or higher.
Furnace Replacement Costs by Brand
The brand of furnace you buy can also affect the price. The cost difference between the best furnace brands can be several thousand dollars. For example, a 100,000 BTU 96% AFUE furnace can cost $6,400 from Bryant but $6,000 from Amana and $9,000 from Carrier. Rheem furnaces tend to be on the more affordable end of the furnace cost spectrum.
This is also why getting multiple quotes from different service providers is important. Each HVAC company specializes in different brands, so it’s always a good idea to review the options different companies offer.
| Furnace Brand | Average Cost |
| Rheem | $4,200 – $5,000 |
| Trane | $4,800 – $14,000 |
| American Standard | $2,800 – $9,500 |
| Lennox | $3,000 – $8,500 |
| Carrier | $2,500 – $5,500 |
New Vs. Replacement Heating System
The total cost of your furnace repair or replacement project depends on whether you are replacing the old furnace or installing a completely new type of furnace. Because all the equipment is already in place, replacing a furnace often costs less than installing a completely new type.
The cost of replacing a furnace includes the new furnace, installation, removal of your old appliance, and other furnace components. To replace your old furnace with a newer version, you can expect to pay between:
- $2,000 to $7,000 for an electric furnace
- $3,300 to $7,800 for a gas furnace
- $6,400 to $9,300 for an oil furnace
Besides the furnace and installation costs, you may incur additional costs if you install a completely new system. You may have to pay for an electrician, new ductwork, an updated/smart thermostat like Ecobee, and other furnace components that can easily add $1,000 or more to your total cost.
Related: Should I Replace My 30-Year-Old Furnace?
Furnace Repair Vs. Replacement Costs
When your furnace stops working properly, you have two options: repair the existing unit or replace it entirely. In some cases, repairs may seem more affordable in the short term, but replacement is the better long-term investment. Consider the following factors when deciding between furnace repair and replacement:
- Repairs: Some common furnace repairs include fixing igniters, replacing blower motors, cleaning heat exchangers, or patching cracks in the heat exchanger. On average, furnace repairs cost $60 to $550 but can run over $1,000 if multiple parts need replacing.
- Replacement: As noted above, the average cost of replacing a furnace ranges from $2,800 to $7,000. Replacement guarantees an efficient, reliable system designed to last over 20 years. New furnaces also come with warranties on parts and labor.
- Age: Once a furnace reaches 15 to 20 years old, the risk of breakdowns rises, and repair parts become hard to find. At this age, replacement often makes more economic sense than continuing repairs.
- Efficiency: Upgrading an older unit to a modern high-efficiency model can slash your energy bills by up to 30%. The energy savings usually offset the higher replacement cost over time.
Common Furnace Repairs
Some of the most common furnace repairs include:
- Igniter replacement: Faulty hot surfaces or spark igniters prevent the furnace from lighting. Expect to spend $150 to $300.
- Blower motor replacement: Blower motors distribute heated air. When your furnace blower fails, it won’t push warm air into the ducts. Expect to spend $400 to $700.
- Heat exchanger cleaning: Dirt buildup on the heat exchanger blocks airflow and reduces efficiency. Professional cleaning restores performance. Expect to spend $200 to $500.
- Heat exchanger patches: Cracks allow dangerous exhaust gases into the ductwork. Patching is cheaper than full replacement. Expect to spend $500 to $1,500.
- Flame sensor replacement: The flame sensor monitors the pilot light. If it fails, the furnace cannot detect a lit pilot, so it will not start the heating cycle. Expect to spend $150 to $300.
- Thermostat wiring repair: Faulty thermostat wiring prevents communication between the thermostat and the furnace control board. This stops the furnace from turning on when heat is called for. Expect to spend $100 to $250.
Professional Vs. DIY Furnace Replacement
Some DIY projects are easy for homeowners to take on, but furnace replacement isn’t one of them. This home system is critical to the comfort of your home, and poor installation can compromise not only your heating and cooling systems but also your safety.
Doing Furnace Replacement Yourself
Unless you’re an experienced HVAC technician, you should leave this home improvement project to the professionals. Replacing a furnace requires knowledge of heating and cooling systems, electrical work, precision metalwork, and plumbing. If you decide to replace the furnace yourself to save money, something could easily go wrong.
When a professional HVAC technician replaces your furnace, they do more than just replace the unit. HVAC technicians make sure your system is hooked up properly and working safely. Before they leave, they’ll check to ensure the system is heating properly, is not emitting harmful gasses, and is connected to the duct system. Plus, you often get a workmanship warranty covering the cost of repairing your furnace in case it’s installed incorrectly.
Hiring a Professional for Furnace Replacement
Most heating, ventilation, and air conditioning contractors will come to your home within 24 hours of your call to give you a quote. If you have a furnace emergency, many top HVAC companies offer emergency service and can be at your home as soon as possible.
To find a local HVAC technician, follow these steps:
- Find local experts near you: Use the button below to be connected to an experienced HVAC technician.
- Get a quote from a few options: Gather at least two quotes from local HVAC providers and compare the material and labor costs.
- Consult them about their recommendations: Ask each HVAC company what they recommend for your home so that you know the unit size and efficiency that is best.
- Choose a furnace from an HVAC provider: Choose the furnace that makes the most sense for your home’s needs and your budget.
- Have your furnace installed: Your HVAC technician will set up the soonest available time to come to your home and replace your furnace.
- Register your warranty: Register your HVAC system with the manufacturer so that you can benefit from warranty coverage. You may also want to buy a home warranty for your HVAC system to save money should it break down.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
Final Thoughts on Furnace Replacement Cost
Your furnace is one of the most important systems in your home, so when it breaks down, it’s important to get it up and running as soon as possible. Furnace replacement typically costs between $2,800 and $7,000, including the furnace, labor, components, and removal of the old unit. Your total furnace replacement cost depends on the system size, efficiency, brand, and overall project scope.
FAQs About Furnace Replacement Cost
Yes, older furnaces use more energy and don’t heat your home as efficiently as a new one. They also pose a risk of unexpected breakdowns, especially during cold snaps. The $2,800 to $7,000 price for a new one sounds steep, but your monthly energy bills will drop immediately with a new system. Repair costs also decrease, and you’ll have peace of mind that it won’t fail mid-winter.
Modern furnaces add smart controls, better air filtration, and improved safety features. Many models can also qualify for tax credits — up to 60% off or $600 back for high-efficiency units.
The price of your new furnace depends mainly on the size of your home and your local climate. A 2,000-square-foot home in Minnesota needs a different system than the same-sized house in Florida. High-efficiency models cost more upfront but slash your monthly energy bills– sometimes paying for themselves within 5-7 years.
Complex installations drive up costs, too. New ductwork adds $2,000-$5,000. Premium brands run 15-30% more than basic models. Local permits can cost $400-$1,500, and hauling away your old unit adds $60-$330. But a proper installation prevents future headaches.
The average cost to replace a furnace is typically between $2,800 and $7,000 but can be higher or lower depending on the type installed, brand selected, size, etc.
This price includes the furnace itself, labor hours, removal of your old unit, and basic parts. Your location makes a big difference — the same 60,000 BTU furnace that costs $3,900 in South Carolina may cost $4,800 in Massachusetts due to different installation code requirements and labor rates.
The best type depends on your local fuel costs and climate. In areas with low gas prices like the Midwest, gas furnaces offer the best value — a 96% AFUE gas model costs about $4,500 but can cut heating bills by $300-400 yearly compared to older units.
For warmer regions like Florida or Southern California, electric furnaces make sense. They cost less upfront ($2,000-$7,000) and work well for moderate heating needs. Oil furnaces suit areas without natural gas lines, though they cost more to run. For the best long-term value, pick a furnace that matches both your local fuel prices and weather patterns.
